Business, 23.01.2020 07:31 wrightdarius78
Vivian books buys books and magazines directly from publishers and distributes them to grocery stores. the wholesaler expects to purchase the following inventory.
april may june
required purchases (on account) $ 113,000 $ 133,000 $ 145,000
vivian booksâs accountant prepared the following schedule of cash payments for inventory purchases. vivian booksâs suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining10 percent are paid in the month following the month of purchase.
required
a.
complete the schedule of cash payments for inventory purchases by filling in the missing amounts.
schedule of cash payments for inventory
april may june
payment for current accounts payable $107,350
payment for previous accounts payable 14,000
total budgeted payments for inventory $121,350
b.
determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.
Answers: 3
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